ABSTRACT
This chapter discusses the various methodologies for estimating team or managerial efficiency that have been applied previously by reviewing the literature on sports team efficiency, and also discusses the available methodologies by reviewing recent development of the stochastic frontier literature. It offers a significant discussion on econometric methods for estimating efficiency in the sports team industry. The chapter discusses how to take into account the aforementioned peculiar characteristics in an empirical analysis. It addresses some further research topics in the literature. The chapter provides a review of the literature on team sports efficiency estimation. It focuses on the econometric methods for estimating the efficiency of sports teams. The chapter discusses various methodologies for measuring technical efficiency and allocative efficiency and offers a comparison between established methods of measurements. It addresses some issues for empirical analysis of team efficiency with respect to the peculiar economics of the industry as well suggesting research topics yet to be tackled.
